R & A Wilson Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC237983 (Scotland)

R & A Wilson Limited

Financial Statements

for the Year Ended 31st October 2018

Page

Company information

1

Balance sheet

2

to

3

Notes to the financial statements

4

to

9

Directors:

A C M Wilson

Mrs R E Wilson

Mrs S E M Williams

Secretary:

A C M Wilson

Registered office:

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Business address:

Clackmae

Earlston

Berwickshire

TD4 6AJ

Registered number:

SC237983 (Scotland)

Accountants:

Rennie Welch LLP

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

Fixed assets

Intangible assets

4

1,983

-

Tangible assets

5

1,662,470

1,445,755

1,664,453

1,445,755

Current assets

Stocks

1,032,021

895,828

Debtors

6

162,151

162,855

Investments

7

200

200

Cash at bank

906

1,027

1,195,278

1,059,910

Creditors

Amounts falling due within one year

8

981,072

715,708

Net current assets

214,206

344,202

Total assets less current liabilities

1,878,659

1,789,957

Creditors

Amounts falling due after more than one year

9

(1,401,656

)

(1,334,933

)

Provisions for liabilities

(174,071

)

(157,412

)

Net assets

302,932

297,612

Capital and reserves

Called up share capital

100

100

Retained earnings

302,832

297,512

Shareholders' funds

302,932

297,612

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st October 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st October 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors on 15th July 2019 and were signed on its behalf by:

A C M Wilson - Director

1.	Statutory information

R & A Wilson Limited is a private company, limited by shares , registered in Scotland. The company's

registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Turnover arising from the sale of goods is recognised when the significant risks and rewards of

ownership have passed to the buyer. Turnover arising from the provision of services is recognised as

contract activity progresses and the right to consideration is earned.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, has been

fully amortised over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

Milk quota has been fully amortised.

Basic payment scheme entitlements are being amortised evenly over their estimated useful life of four

years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Robotic milking equipment

-

10% on cost

Land

-

not provided

Property improvements

-

5% on cost and 4% on cost

Plant and machinery

-

15% on reducing balance

Tractors

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment

-

25% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses.

Stocks

Stocks are valued at the lower of cost and net realisable value by the directors with the exception of

the animals on herd basis. Cost includes all direct expenditure and appropriate proportion of fixed and

variable overheads. Net realisable value is based on estimated selling prices less further costs

expected to be incurred in bringing the growing crops to completion and finishing the livestock.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade

creditors, accruals, hire purchase contracts, bank loans and directors' loans.

Bank loans and hire purchase contracts are initially measured at the present value of future payments,

discounted at a market rate of interest, and subsequently at amortised cost using the effective interest

method.

Directors' loans (being repayable on demand), trade debtors, trade creditors and accruals are

measured at the undiscounted amount of the cash or other consideration expected to be paid or

received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss

in the Statement of Income and Retained Earnings.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Income and Retained Earnings, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at

the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals payable under operating leases are charged to the profit and loss account on a straight line

basis over the term of the lease.

Investments

Current asset investments are stated at the lower of cost and net realisable value.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the Statement of

Income and Retained Earnings in the period in which they are incurred.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event

prior to the balance sheet date and that a payment will be required in settlement that can be estimated

reliably. Where material, provisions are calculated on a discounted basis.

Going concern

The directors have considered the company's financial position for a period of 12 months from the date

of signing these financial statements and have reasonable expectation that the company has adequate

resources to continue in operational existence for the foreseeable future. Accordingly, they continue to

adopt the going concern basis in preparing these financial statements.

3.	Employees and directors

The average number of employees during the year was 6 (2017 - 7 ) .

4.	Intangible fixed assets

Basic

payment

Milk

scheme

Goodwill

quota

entitlements

Totals

£

£

£

£

Cost

At 1st November 2017

71,200

334,680

-

405,880

Additions

-

-

2,645

2,645

At 31st October 2018

71,200

334,680

2,645

408,525

Amortisation

At 1st November 2017

71,200

334,680

-

405,880

Amortisation for year

-

-

662

662

At 31st October 2018

71,200

334,680

662

406,542

Net book value

At 31st October 2018

-

-

1,983

1,983

At 31st October 2017

-

-

-

-

5.	Tangible fixed assets

Robotic

milking

Property

Plant and

equipment

Land

improvements

machinery

£

£

£

£

Cost

At 1st November 2017

476,108

-

1,026,449

326,926

Additions

-

280,079

-

55,022

Disposals

-

-

-

(37,080

)

At 31st October 2018

476,108

280,079

1,026,449

344,868

Depreciation

At 1st November 2017

248,808

-

156,320

178,444

Charge for year

47,614

-

48,513

26,357

Eliminated on disposal

-

-

-

(14,245

)

At 31st October 2018

296,422

-

204,833

190,556

Net book value

At 31st October 2018

179,686

280,079

821,616

154,312

At 31st October 2017

227,300

-

870,129

148,482

Motor

Office

Tractors

vehicles

equipment

Totals

£

£

£

£

Cost

At 1st November 2017

260,553

36,740

19,067

2,145,843

Additions

88,000

6,885

-

429,986

Disposals

(56,270

)

(6,500

)

-

(99,850

)

At 31st October 2018

292,283

37,125

19,067

2,475,979

Depreciation

At 1st November 2017

91,371

7,740

17,405

700,088

Charge for year

28,074

8,457

555

159,570

Eliminated on disposal

(27,460

)

(4,444

)

-

(46,149

)

At 31st October 2018

91,985

11,753

17,960

813,509

Net book value

At 31st October 2018

200,298

25,372

1,107

1,662,470

At 31st October 2017

169,182

29,000

1,662

1,445,755

6.

Debtors: amounts falling due within one year

2018

2017

£

£

Trade debtors

126,917

122,421

Other debtors

35,234

40,434

162,151

162,855

7.	Current asset investments

2018

2017

£

£

Unlisted investments

200

200

8.

Creditors: amounts falling due within one year

2018

2017

£

£

Bank loans and overdrafts

439,806

330,154

Hire purchase contracts

115,697

104,978

Trade creditors

295,904

209,045

Taxation and social security

8

-

Other creditors

129,657

71,531

981,072

715,708

9.

Creditors: amounts falling due after more than one year

2018

2017

£

£

Bank loans

1,116,175

1,010,971

Hire purchase contracts

285,481

323,962

1,401,656

1,334,933

Amounts falling due in more than five years:

Repayable by instalments

Bank loans due after five years

695,770

678,533

10.	Secured debts

The following secured debts are included within creditors:

2018

2017

£

£

Bank overdrafts

346,569

254,347

Bank loans

1,209,412

1,086,778

Hire purchase contracts

401,178

428,940

1,957,159

1,770,065

The Clydesdale Bank PLC hold a floating charge over all the assets of the company together with a

personal guarantee of £1,450,000 from Mr ACM and Mrs RE Wilson, the directors of the company. A

standard security is also held over 58 acres of land at Chapel-on-Leader.

Hire purchase contracts are secured against the assets to which they relate.

11.	Directors' advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31st October 2018

and 31st October 2017:

2018

2017

£

£

Director 1 and Director 2

Balance outstanding at start of year

18,706

26,243

Amounts advanced

-

46,775

Amounts repaid

(18,706

)

(54,312

)

Balance outstanding at end of year

-

18,706

This loan is unsecured and repayable on demand. Interest is charged by the company at the official

rate published by HMRC.

12.	Post balance sheet events

On 26th March 2019 an interim dividend of £550 per share was declared in respect of the year ended

31st October 2018.